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Online marketing advantages against Traditional marketing

Yesterday we covered the basics of Online Marketing. today we thought it would be great to share how exactly online marketing differs from Traditional marketing techniques. We will later also cover up a few concerns related to Online Marketing.

What are the advantages of Online marketing?

1. Faster communication with consumers: Throughout the past decade, with the evolution of Internet Marketing techniques, more companies have grown to realise the time saving advantage possessed by Internet Marketing. Lynn Wolf, director of marketing, Wipfli Ullrich Bertelson LLP, showcased the time saving advantage of Online Marketing [See Figure 2]. Figure 2 clearly explains that where Email marketing for Wipfli may require a mere 4 days of time, the traditional Print media approach would consume approximately 16 to23 days of Preparations (AICPA, n.d).

Figure 2: The comparison of Time invested in Print media techniques of Traditional Marketing v/s the revolutionary Email marketing technique of Online Marketing (AICPA, n.d).
Figure 2: The comparison of Time invested in Print media techniques of Traditional Marketing v/s the revolutionary Email marketing technique of Online Marketing (AICPA, n.d).

2. World-wide Reach, with a Cheaper Alternative: Unlike Traditional Marketing, Online Marketing does not possess any barriers in regards to the level of exposure to the target markets. From the smallest entrepreneurial firms to the large multi-nationals, the target market reach limits to global expansion merely exist. Online Marketing tends to level out the playing field for small entrepreneurs to compete with their larger competitors.

Many Large companies access International markets by using wide-reaching methods of Traditional Marketing like Billboards, Mass mailing brochures/newsletters or Television Broadcasting; funds for which are unavailable to smaller entrepreneurial firms. Online Marketing lends an opportunity to both large and small firms to attract the similar market at astonishingly cheaper expenses, thus simultaneously reducing the differences between the marketing capabilities of large and small entrepreneurial firms (DirectTraffic.org, 2007).

Example: Wipfli Ullrich’s E-newsletter program manages to save USD 13000 annually which it would have usually spent in creations of tangible newsletters and brochures for physical mailing purposes (AICPA, n.d).

3. Market Testing before entry: Online Marketing provides excellent opportunity for small entrepreneurial firms for mitigating certain risks associated with International businesses. It allows companies to virtually enter any foreign market and gain valuable know-how about their consumers as well as competitor’s behavioural trends, with minimalistic resources at risk. This allows the firm to test the markets and develop initial knowledge management resource about the target market before formally incorporating or physically entering the market.

4. Response Rate: While Traditional Marketing yields up to 2% response rate from potential Clients and up to 7% from current Clients, Online Marketing manages to pull up to 20% response rate (AICPA, n.d).  Greater Response rates may directly reflect companies Understanding of its consumers, Sales, Reach, etc.

Some Concerns
– Security concerns: Over the past few years there have been an increased number of Consumer Privacy related cases on the Internet (Huaiqing, Lee, & Wang, 1998). Some of them include,

– Junk email marketing which arise when email address lists are illegally obtained by illicit companies who use these lists to send out spam mails.

– Activities of Web Advertisements that track user’s usage trends and preferences.

As a result there has been a certain amount of hesitancy among the consumers to purchase things online.

– Reaching the remote consumer:
It is observed that the % rural users of Internet continue to lag behind urban and suburban users. This diminishes the reaching capabilities of products to the rural consumer. A recent study of American rural usage of internet revealed that only 52% of the country’s rural population had an access to Internet (Bell, Reddy, & Rainie, 2004). It possesses has a shortcoming for certain Entrepreneurs who wish to market their products to the rural population. Interestingly, the study also notes that though the rural figures lag behind, they have been on the growth trend. Hence, it can be expected that the rural consumer reach barrier would be laid aside in the upcoming years.

Bibliography
AICPA. (n.d). Internet Marketing—The End of Traditional Marketing as We Know It . Retrieved August 18, 2008, from http://www.aicpa.org/pubs/tpcpa/feb2001/internet.htm

Bell, P., Reddy, P., & Rainie, L. (2004). Rural Areas and the Internet. Washinton. D.C: PEW Internet, from http://www.pewinternet.org/pdfs/pip_rural_report.pdf.

DirectTraffic.org. (2007, June 18). Internet Marketing. Retrieved August 16, 2008, from http://www.directtraffic.org/OnlineNews/Internet_marketing_20075115473.html

Huaiqing, W., Lee, M. K., & Wang, C. (1998). Consumer privacy concerns about Internet marketing. ACM , Volume 41 (3), pp 63 – 70.

One Response to Online marketing advantages against Traditional marketing

  1. Ed Roach Reply

    September 22, 2009 at 2:08 pm

    I believe some of the biggest advantages over traditional marketing is the potential for immediate response to your offering. Not only is it cheaper to deliver your message to your target, but that target can immediately respond with a click of their mouse. Not only this advantage, but you can see exactly who opened your email promotion and that makes them a warm lead.

    With traditional direct mail, it is costly to distribute and you are unaware of if your target even see the message.
    Analytics, budget, and response are three advantages of online marketing.

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